AFME (Association for Financial Markets in Europe)

AFME has published a new paper, setting out priorities for sustainable finance in the UK. We welcome the government’s plans to deliver green growth and make the UK a leading centre for green finance. Financial institutions have an important role to play in providing and facilitating the financing needed to support companies as they decarbonise. We believe that the government should prioritise: 👉 the endorsement and consultation on the adoption of UK Sustainability Reporting Standards aligned with the standards developed by the International Sustainability Standards Board (ISSB); 👉consulting on the adoption of transition plan disclosures for listed and unlisted companies; and 👉following up on the recommendations of the Transition Finance Market Review to facilitate transition finance. Access the paper here: https://bit.ly/4faBFSS

AFME welcomes yesterday’s adoption by the European Commission of the Delegated Act to delay the implementation of the EU’s market risk framework by one year to 1 January 2026. AFME supports the EU Commission’s decision given the need for further clarity on both substance and timing, and the need for international alignment. However, further work remains to be done. It is crucial that the EU’s implementation of the Trading Book/Banking Book boundary (TB/BB boundary) is consistent with the timeline invoked by the delegated act to delay both the FRTB Standardised Approach (SA) and the FRTB Internal Model Approach (IMA) capital calculations. Access the press release here: https://bit.ly/3So7Cxo

This year, AFME is launching its first European High Yield and Private Debt Forum in Amsterdam on 22nd October 2024. The forum will bring together over 100 of the leading names in the High Yield, Leveraged Loans and Private Debt / Direct Lending markets, providing topical and invaluable discussions, and a great opportunity to network. To build on AFME’s successes with its previous Annual European Leveraged Finance Conference series, AFME is recalibrating this event with a focus not only on high yield bonds and leveraged loans, but also coverage of the sizable European Private Debt / Direct Lending market. Register now: https://bit.ly/3WxUUi3

Don't miss Victoria Saporta's insightful speech on the future of the Bank of England's balance sheet. As the Executive Director of the Markets Directorate at the Bank of England, she delves into the necessity of complementary operations to the short-term repo facility and the strategic transition towards a repo-led portfolio. Watch the full version on AFME's YouTube channel: https://bit.ly/3zRrcM2

AFME is pleased to publish its new report ‘Scaling up and integrating EU capital markets’, setting out its vision and recommendations on the future of EU capital markets.   In the report, AFME proposes key solutions for a reinvigorated CMU: 👉 increasing market liquidity 👉 relaunching the EU securitisation market 👉 modernising the regulatory and supervisory ecosystem   Read the full report here: https://bit.ly/3zSpv13  

It was a pleasure to hear from Victoria Saporta, Executive Director of the Markets Directorate at the Bank of England on the future of the BoE's balance sheet. Ms. Saporta focused her speech on the necessity of complementary operations to the short-term repo facility to reach a steady state vision of a demand-driven framework that supplies enough reserves to meet system-wide demand. She explained why this should be achieved through a repo-led portfolio rather than a gilt-led portfolio, noting that the BoE already has a facility in place to complement STR, the ILTR. The BoE is currently reviewing the calibration of the ILTR to ensure it can play this role effectively and will engage with the market later this year on this. Meanwhile, the transition to the steady state is underway, the point where excess reserves will no longer exist is in sight, and it’s crucial that both the BoE and market participants prepare, including by increasing ILTR usage. You can read the full speech here: https://bit.ly/46nmUYX.

Who will be driving the conversation at AFME's Operations, Post-Trade, Technology & Innovation Conference 2024? Register now to hear from: 👉 Laura van Geest, Chair, Autoriteit Financiële Markten 👉 Marcel Haag, Director Horizontal Policies, DG-FISMA 👉 Sam Riley, Chief Executive Officer, Clearstream 👉 Okan Pekin, Global Head of Securities Services, Citi Don't miss out on the early-bird discount—register now: https://bit.ly/4fgbF8A

A delegation from AFME was pleased to be in Strasbourg for the constituent session of the 10th European Parliament

A cross-industry group made of up The Investment Association, AFME, AIMA - The Alternative Investment Management Association, and UK Finance have today issued a joint statement on the development of a UK consolidated tape: “The establishment of a UK consolidated tape for equities and Exchange Traded Funds (ETFs) would be a major step in enhancing the competitiveness, transparency and resilience of UK capital markets. We strongly support the FCA’s ongoing work to develop the tape and its goal of strengthening the UK’s position in global wholesale markets. “The ‘sell-side’ and ‘buy-side’ are aligned in their views regarding the scope and features of the tape for equities and ETFs. Namely, we urge the regulator to require the inclusion of both pre-trade and post-trade data from launch. Including real-time pre-trade data will be crucial for the tape’s commercial viability and long-term success - it would, for example, attract the widest user base and promote retail market participation. In particular, we believe the tape should include, from the outset, five layers of best bids and offers and venue attribution. This would offer market participants and regulators a complete view of market liquidity. Ultimately, it has the potential to boost trade in UK markets. “We understand that the FCA is due to provide an update on its work by the end of this year. We would welcome an acceleration in the timeline to create a UK consolidated tape for equities and ETFs and look forward to working with the FCA on the design and the development of a tape that is comprehensive, meaningful and delivers optimal outcomes.”

Following the publication of the Financial Conduct Authority's final Listing Rules, AFME has issued a comment. We applaud the FCA on a bold overhaul of the current listing regime, which AFME believes, is a significant step towards increasing the attractiveness of the UK capital market and aligning the regime with international market standards.   AFME thanks the FCA for the continued engagement over the past three years and we look forward to further engagement with the FCA as this develops. Access the press release here: https://bit.ly/4cCKsLE